The following Construction practice note Produced in partnership with Victoria McGie provides comprehensive and up to date legal information covering:
Infrastructure is a broad term encompassing a wide range of facilities from schools, hospitals, roads and railway lines to wind, electricity, waste and water projects, oil and gas facilities, pipelines and processing plants.
Increasingly contractors are honing their expertise into niche areas and working on infrastructure projects internationally. As a result, the forms of construction contracts used are becoming more standardized internationally.
While infrastructure construction contracts have key provisions in common, there is no one standard form that fits all projects. Any standard form will need to be tailored to suit the specific issues and subject matter of the projects, the risk profile of the parties and comply with the legal jurisdiction of the contract and project location.
A bespoke form of infrastructure construction contract may be preferable to an extensively amended standard form.
The form of contract used for constructing an infrastructure project depends upon the:
procurement of the works, for instance:
under a single construction contract with one contractor who assumes single point responsibility for the project, such as under an Engineering Procurement and Construction (EPC)/Turnkey contract
under a single construction contract with one contractor whist the employer retains some project risk
under a PPP model whereby the employer contracts with an SPV to procure the works and operate the facility and that SPV, in turn, contracts with a contractor often under an EPC/Turnkey
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